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If you receive Disability Income from a Long Term Disability Insurance Policy can creditors garnish the monthly income from this policy?
The answer to your question is yes. If creditors can garnish your wages if you were working, then they can garnish the income you receive from your disability provider as well. The same procedures they would have to go through to garnish your wages from your employer, they would go through the disability company (filing court documents). Unfortunately, creditors consider any income you receive, working or not, as income.
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The simple answer is Yes. A person can certainly qualify to receive Long Term Disability benefits because of having cancer. However, it is not the fact that he/she has cancer …that qualifies him/her for benefits. In order to qualify for Long Term Disability benefits, a person must satisfy the requirements set forth by their Group or individual policy - which can be found by reviewing the definition of total disability along with the guidelines for Residual disability. Without getting too far into detail, the requirement to receive Disability benefits from a group or individually owned policy will be worded something like: To be considered totally disabled you must be unable to perform the material and substantial duties of your occupation (or "any" occupation, depending on your contract). Thus explaining that it is not necessarily Cancer that enables a person to receive Long Term Disability benefits, but rather the inability to perform his/her occupational duties that can be caused by cancer. In order to qualify for Residual benefits (benefits for partial disability), the debilitating injury or illness must cause a loss of income greater than 15-25%, depending on the policy.
The following rule applies to "regular" SSI benefits and may also apply to disability payments, but check with the Social Security Administration to be sure. If you have a t…otally separate bank account, either checking or savings, and no money from ANY source other than Social Security has EVER been deposited into it, then that money is protected from garnishment by ANY source, even the IRS or state tax authorities. I started a separate savings account and my monthly payment is direct deposited into it. Then, as I need money, I transfer it to checking for paying bills, etc.
Yes, that is true but the bank can go to court and get a judgment against you then call the county sheriff to go to your house and seize your personal assets from your house t…o satisfy the debt! No. Not directly but according to Carol: http://www.creditmagic.org/garnishment/card-debt.html Social security benefits can only be garnished for recovery of Federal Taxes and alimony and child support obligations but, it cannot be garnished for recovery of credit card or any other types of debt. However the creditor can bring judgment against you to garnish your bank account. If the creditor garnishes your bank account then your account may be debited in full whenever any money gets credited in the account.
What if your only income is social security disability and you have to turn in your car can they garnish your social security?
Answer Social security disability is protected from garnishment in judgments. The only unknown I have in answering this is if the debt is for a student loan, or IRS related a…nd or related to child support payments. Those types of loans/are not even protected if you file bankruptcy. But if your social security income is put into a bank and you deposit other funds then a judgment can be made against the funds in that account as it is not virgin SSI money it is mixed funds and can potentially be seized. Or will cost you time and money (lawyer fees) to prove it is only SSI money. If you need to protect you SSDI funds open a fresh account and set up automatic deposits into that new account, the NEVER, I repeat never ever deposit any non-SSI funds in that account. Never transfer money into that account from another account either (also important). This is very important i you need to cash check from time to time open a second account to deposit funds into, then spend down those funds while leaving you protected funds alone, worse case if a company gets a judgment against you and is allow possession of your bank account they can only touch the non-ssi account. Pay you rent out of the non ssi account, pay for food gas et.. until those funds are spent down then go back to paying you bills using you SSI account. You may be required to open the account with a minimum deposit, you can open it with an actual SSI check or in my case I opened the account with $1.00 and the next funding was a direct deposit from Social Security. Worse case scenario if they claimed mixed funds, sure they can get a $1.00 from me....it will cost them a lot in legal expenses to get that buck though. More Information Your question suggests you're asking whether a commercial creditor can garnish your Social Security check for the outstanding balance on an auto loan. The answer is no. Only the federal government can garnish your Social Security check, and only for limited purposes, such as payment of child support, alimony, delinquent taxes, and debt to other federal agencies. The problem, as the first contributor mentioned, is that collectors may freeze and levy your account after the check is deposited (or direct deposit posted). The Treasury Department planned to implement new rules in 2010 preventing banks from freezing an account that receives federal benefit deposits without evaluating the past 60 days deposits. They would be required to protect any amount equal to the non-attachable deposits (whether that money had already been spent or not). Unfortunately, there's been little mention of the procedure since May 2010. Barring voluntary cooperation from your bank, you can file a "waiver of garnishment" with help from your nearest Legal Aid Society and get a court order stopping the action. You can also notify the creditor that the income is from Social Security, and protected by federal law, and ask the bank to unfreeze your account (all in writing). The process can sometimes take awhile, but you do have legal recourse, so don't allow unethical collectors to take advantage of you. Your Legal Aid Society will not cost you a fortune in legal bills; if you can't afford to pay, they will assist you for free. For more information, see Related Links, below.
Can private long term disability payments be garnished in Indiana by a judgment creditor for credit card debt?
That depends. If you are still employed by the company, those payments can be considered earned income and garnishable. If you are no longer employed but receive them as part …of an insurance payout, no.
Medical expense insurance: Covers some or all of the out of pocket expenses paid by the insured for covered medical expenses. Disability insurance: Makes up for some or all …of the income lost during the disability of the insured.
Answer Not by a judgment creditor. They are subject to garnishment for child support, federal tax arrearages and in some cases spousal maintenan…ce (alimony).
Is monthly Annuity pension received under old Jeevan Dhara policy of 1992 is Tax free as per Income Tax Rules?
yes it is taxable
Minimum Income for Disability Insurance Here is input and advice from FAQ Farmers: * No, but in most cases you can only buy up to 60% of y…our current income and you must be emplyed FT. 4lifeguild * Generally 20 to 25K. It's not a law. Check with your agent. State Disability and Social Security is mandatory. * Yes. The monthly benefit of personal disability insurance is determined by your income.
Your disability income is based on the last 10 years of you working income.
Yes, by the federal government only. The IRS, federal student loans, ect. Regular creditors can not.
The taxable status of short term disability depends upon how you pay the premium. If you pay for short term disability at work via pre-tax deductions, the benefit will… be taxable. If you pay with after tax deductions, you keep the entire benefit free of any taxes.
If you are referring to Short-Term Disability Insurance, it is taxable if your employer made the contribution, and not taxable if you made the contribution. This is because it… is treated as a taxable benefit from employment that you have not been taxed on already. Please let me know if you are referring to something else. Thanks, Ragu HandyTax (Disability Tax Credit Consultants)
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If you are receiving short-term disability income benefits and you decide to quit your job will you have to reimburse your employer for the percentage of your income you received during your leave?
NOT ONLY BAD QUESTION but ILLOGICAL - first you collect INSURANCE Benefits - not PAY (this money comes from insurance policy that you and/or employer pay into) - - You …don't return any "insurance benefits" from anybody - unless they can prove your disability a fake. I'm guessing your short term disability is a personal health issue - and you're ready to go back to work, except you don't want to work for your old employer. If you want to get a new job - don't mention your short term disability to new employer. If new employer looks like they want to confer w/old employer - just cop a plea - like working for them made you sick! and now you realize that you need a different employer cause you Love what you do, and you want to work for someone who appreciates you! Well I could go on forever - but insurance proceeds are not PAY - and if they were you would have to pay income tax on them - so go ask IRS agent about your liability for next years income taxes. Best way to check that is to look at checks you getting from Insurance company - if pay - they're taking out FED/State income taxes.
Canada's Revenue Agency has a long term disability insurance for disabled individuals. The amount received from this does, in fact, count as taxable income.
What type of disability insurance policy likely to have he lowest premium for a given monthly payment?
Speaking very generally, an "any occupation" disability policy would have a lower premium than an "own occupation" policy. To collect under the first, one would have to be una…ble to perform any sort of job for which he/she is fit by virtue of education, experience or training. In contrast, you should be able to collect under the second type only if you are unable to perform the functions of the job that you had at the time of onset of disability. Therefore, since it is harder to qualify for benefits under the first type, the premium should be lower. Another factor to consider is the "elimination period". This is sort of similar to a deductible in a property and casualty policy. It provides that the disability must last for a set period of time before benefits are payable. For example, there may be options to elect a 30, 60, 90 or 120 day elimination period.